Nature of Consumers' information search , types of information sought by consumers, sources of consumer information, marketing strategy in the information search process, consumers evaluative criteria and its measurement, consumer decision rules, Marketing strategy in the evaluation process.
2. Information search and decision making:
Consumers engage in both internal
and external information search.
Information Search is a stage in the Consumer
Decision Process during which a consumer searches
for internal or external information. Consumers
undergo a brainstorming session during this phase of
buying decision.
3. Internal search involves the consumer identifying
alternatives from his or her memory. For certain
low involvement products, it is very important that
marketing programs achieve “top of mind”
awareness. For example, few people will search
the Yellow Pages for fast food restaurants; thus, the
consumer must be able to retrieve one’s restaurant
from memory before it will be considered.
4. For high involvement products, consumers are
more likely to use an external search. Before
buying a car, for example, the consumer may ask
friends’ opinions, read reviews in Consumer
Reports, consult several web sites, and visit several
dealerships. Thus, firms that make products that
are selected predominantly through external search
must invest in having information available to the
consumer in need—e.g., through brochures, web
sites, or news coverage.
5. During the information search, the options available to
the consumer are identified or further clarified.
An internal search refers to a consumer's memory or
recollection of a product, oftentimes triggered or guided by
personal experience. It is more actively practiced for low
involvement products.
An external search is conducted when a person who has no
prior knowledge about a product seeks information from
personal sources (e.g. word of mouth from friends/family)
and/or public sources (e.g. online forums, consumer reports)
or marketer dominated sources (e.g. sales persons,
advertising). It is more practiced for high involvement
6.
7. Passive Search:
It refers to consumer’s activity for short period
involvement. They tend to involve themselves in a
short activities such as watching videos, TV shows,
turning on the pages of magazines and knowing new
things, blogs, etc. But they further don’t make any
discussion on the topic they recently encountered
with. They are the real observers. That video is not
shared, the article is not spoken about and that blog
definitely does not get any more readers or subscribers
as a result of this person.
8. Active Search:
Customer’s involved in such type of information
search activity are ration and real learners. They
involve themselves for a long discussion and sharing
time. When the passive consumer’s encounters in
activities like reading a new current affairs in the
magazines, videos in YouTube channels, articles in
magazines, etc. then they tend to learn more. They
will discuss with their friends, family, etc. They
watch a talk on TED, and they immediately give the
link to a couple friends via email.
9. They may read an article, and follow this up by
writing a blog post discussing it, looking into some
of the subtleties and investigating the topic a little
further. These kind of consumers are the kind that
the content creators love. The consumers
themselves take so much more from the content,
understanding it on a better level and through their
reflection on it, they are able to remember it much
better and evaluate its immediate and potential
long term impact on their job/industry/lives etc.
10. Sources of Consumer Information
Five primary sources of information available to consumers are:
• Memory of past searches.
• personal experiences.
• low - involvement learning.
• Personal sources; such as friends, family, and others.
• Independent sources, such as magazines, consumer groups,
and government agencies.
• Marketing sources, such as sales personnel, websites, and
advertising.
• Experiential sources, such as inspection or product trial.
13. Types of Information Sought by Consumers
Consumer decisions require information about:
Appropriate evaluative criteria
Alternatives Available
Alternative Characteristics
14. Evaluation Criteria
Evaluation criteria are the various dimensions,
features, or beliefs a consumer looks for in
response to a specific problem.
Evaluation criteria can differ in type, number, and
importance. The type of evaluation criteria a
consumer uses in a decision varies from tangible
cost and performance factors such as style, taste,
prestige, feelings generated and brand image.
15. One potential objective of both internal and external
search is the determination of appropriate evaluative
criteria.
Government agencies and consumer organizations
want consumers to use sound evaluative criteria.
Marketers wanted consumer to use evaluative
criteria that match their brand’s strengths.
Both marketers and government agencies provide
information designed to influence the evaluative
criteria used.
16. Fig: Evaluation Criterion
What evaluation
criteria are need?
What solution
exists?
What is the
performance
of each
solution on
each evaluative
criteria?
Can a
decision be
made?
YES
NO
Informati
on Search
terminate
s
Informati
on search
continues
17. Fig: Alternatives Available
(Brands, Products)
Awareness Set
( alternatives the
consumer is aware of)
Unawareness Set (alternatives the
consumer does not know about)
Evoked Set
/consideration set
(alternatives given
consideration)
Inert Set
(Back up alternatives)
Inept Set
(Avoided alternatives)
Specific Alternative
purchased
Alternatives considered,
but not purchased
18. Alternative Characteristics
To choose among the brands in the evoked set, the
evoked set consumer compares them on the
relevant evaluative criteria. This process requires
the consumer to gather information about each
brand on each pertinent evaluative criterion.
19. Marketing Strategy based on information search
patterns
( Target Market Decision Making Patterns)
Brand
Position
Habitual
Decision
Making
(no search)
Limited
Decision
Making
(limited
Search)
Habitual
Decision
Making
(Extensive
Search)
Brand in
Evoked Set
Maintenance
Strategy
Capture
Strategy
Preference
Strategy
Brand in not
evoked Set
Disrupt
Strategy
Intercept
Strategy
Acceptance
Strategy
20. Sound marketing strategies take into account the
nature of information search prior to purchase.
Two dimensions of search are particularly
appropriate:
1. The type of decision influences the level of search,
and
2. The nature of the evoked set influences the
direction of the search
21. Strategies (in evoked set)
• Maintenance strategy
– Defend against disruptive tactics
– Constant activity + interest
• Capture strategy
– Constant supply + quality
– Continue limited search
• Preference strategy
– Search locations must be anticipated e.g. chemists
22. Maintenance Strategy
If the brand is purchased habitually by the target
market, the marketer’s strategy is to maintain that
behaviour. This requires consistent attention to
product quality, distribution, and a reinforcement
advertising strategy.
23. Capture Strategy
Limited decision making generally involves a few
brands evaluated on only a few criteria.
Brand is in evoked set.
Search occurs mainly at the point-of-purchase or in
readily available media.
Objective is to capture as large a share as
practical.
24. Capture Strategy
The marketer will want to supply information,
often on price and availability, on their website, in
local media through cooperative advertising, and at
the point-of-purchase through displays and
adequate shelf space.
Implementing a capture strategy also requires
emphasis on maintaining consistent product quality
and adequate distribution.
25. Preference Strategy
Extended decision making with the brand in the
evoked set requires a preference strategy.
A simple capture strategy not likely adequate.
Instead, marketer needs to structure information so
brand becomes preferred by target market
26. Strategies (not Evoked Set)
Disrupt strategy
– Attention-seeking ads
– Free samples or bonus encouraging trial
Intercept strategy
– Must attract attention
– POP display
–Product improvements, etc.
Acceptance strategy
– Advertise but don’t ‘sell’ the brand
– Encourage consumer to seek information
27. Disrupt Strategy
If the brand is not part of the evoked set and the
target market engages in nominal decision making,
the marketer’s first task is to disrupt the existing
decision pattern.
Eg; Soy products are a good example of how
disrupt strategies have been used to induce trial
adoption.
28. Disrupt Strategy
Long –Run
Major brand
improvement along with
attention attracting
advertising could shift
consumer to more
extensive decision
making.
Short -Run
Attention-attracting
advertising aimed
specifically at breaking
habitual decision making
can be successful.
29. Disrupt Strategy
Tactics include:
Free samples, coupons, rebates, and tie-in sales.
Striking package designs and point-of-purchase
displays. Comparative advertising.
Firms engage in a disrupt strategy to disturb the
habitual decision process of competitor’s customers
30. Intercept Strategy
If limited decision making and brand is not part of
evoked set, objective will be to intercept the
consumer during search.
Emphasis will be on local media, point-of-
purchase displays, shelf space, package design, etc.
Coupons can also be effective.
31. Acceptance Strategy
Similar to preference strategy, but complicated by
fact that target market is not seeking information
about the brand.
Beyond preference strategy, marketer must attract
consumer attention or motivate brand learning.
Incentives to try product, long-term advertising to
enhance low-involvement learning and use of the
Internet are useful for gaining acceptance.
32. Consumer Evaluative Criteria and its
measurement
During the evaluation of alternatives stage, the
consumer evaluates all the products available on a
scale of particular attributes. A consumer evaluates
a brand on the basis of a number of choice criteria.
These criteria are the standards and specifications
the consumer uses in evaluating products and
brands.
33. Evaluation Criteria are the various dimensions,
features or benefits a consumer looks for in
response to a specific problem.
For eg; when purchasing a food processor, one
buyer may be most concerned about electric motor
horsepower, blade revolutions per minute, and
safety. Another shopper, however may use a
different set of evaluative criteria , including
colour &style of the processor, durability, warranty
and versatility; still another shopper may use only
price as a criteria.
34. No matter how many criteria are evaluated by the
consumer, they are likely to differ in their
importance, usually with one or two criteria being
more important than others.
Determinant attribute: important to the consumer
and are also perceived to differ among the
alternatives.
Critical attribute: Some refer to a determinant
attribute which meets both of these conditions for a
consumer as a critical attribute.
35. For eg: while purchasing a running shoes; brand
name, quality , price and comfort may all be
important to a buyer, but comfort is likely to have
determinant for most runners. Notice that in this
case a subjective factor is considered to be most
important.
Thus, the marketer should be careful in assuming
that a certain feature ranked as most important by
consumers is actually determinant.
36. Measuring Evaluative Criteria
In order for the marketer to develop a successful
marketing mix, there must be an understanding of
what criterion are used by consumers in making a
purchase for this product, decision as well as how
important each criterion is and how the consumer
rates each brand on the various criteria. Each of
these topics will be discussed below.
37. 1.Determining which criteria are used by consumers
2.Determining the importance of criteria used by
consumers.
3.Determining consumer’s evaluation of brand
criteria performance
4.Determining consumer’s cue usage
38. 1. Determining which criteria are used by
consumers
By directly asking consumers what factors they
consider when they compare alternatives for
purchase.
Done in survey questionnaire format or focus
meetings.
Indirect approach “ someone else”
Perpetual mapping ( consumer rating; similarities
and dissimilarities)
39. 2. Determining the importance of criteria used
by consumers:
Once the evaluative criteria are known, a second
measure that the marketer will find useful is the relative
importance consumers place on these criteria.
Rating Scale Method ( 6 point scale ranging from
unimportant to important)
Semantic Differential ( High Price and Low Price)
Constant Sum Scale ( respondents typically allocate
100 points across the evaluative criteria according to
their judgements of each one’s importance)
40. 3. Determining Consumers’ evaluations of
Brand Criteria Performance:
In this case, the marketer is seeking judgements by
consumers relating to performance on various
evaluative criteria by the brand.
41. 4. Determining Consumers’ Cue Usage
Cues are used by consumers to measure or assess
their evaluative criteria it is important to identify
them. Eg: the evaluation criterion of bank security
might be assessed by consumers on the basis of such
cues as physical appearance of the building including
design, location, furniture and colours. Thus , control
of these cues could lead to an enhanced perception of
security.
42. Consumer Decision Rules
How consumers evaluate and choose products and
services in different buying situations.
Rules are used consciously or unconsciously.
Information processing strategies of consumers are
called decision rules. These help a person in the
decision making process by providing guidelines
for complex decisions.
They can be used to evaluate various options and
reduce the risk involved in the decision.
43. Three types of rules
Non-compensatory rule: one in which the
weaknesses of an alternative are not considered by
its strengths (not designed to find “winners”)
Compensatory rule: allowing for trade-offs among
strengths and weaknesses (find “winners”)
Decision heuristics: these are rules of thumb or
short cuts that allow quick decision-making
44. 1. NON-COMPENSATORY RULES
Conjunctive Decision Rule
Here consumers form a different, minimally acceptable
cut off level for each attribute. If a particular brand does
not meet the cut off level of any attribute that brand is
removed from consideration. To select the first
satisfactory brand conjunctive rule is
particularly useful in reducing the choices, after that con
sumers may apply other decision rule.
45. Disjunctive Rule
It is the opposite of conjunctive rule. In this the
consumer decides a separate minimally acceptable
performance level for each attribute. The brand is
accepted if any of the attributes meets or exceeds
the cut off level.
Here the consumer may accept the first satisfactory
alternative as the final choice or may apply another
rule that may be more suitable
46. Lexicographic Decision Rule
The attributes are ranked according to perceived
relevance or importance to the consumer. Then
different alternatives are compared in terms of the
single attribute that is believed to be most
important. If one brand out of the group scores an
acceptable score it will be selected, regardless of
the score on any other attribute.
47. 2. CONPENSATORY DECISION RULE
A consumer determines a brand or
model options in terms of each relevant attribute an
d computes a weighted or summated score for each
brand. The assumption is that consumer will select
the brand that scores the highest among the
alternatives evaluated. It allows a positive
evaluation of a brand on one attribute to balance
out the negative evaluation on some other attribute.
48. Marketing Strategy in the evaluation
process:
Marketers, must understand the evaluative criteria
consumers use relative to their products and develop
products that excel on those features. All aspects of
the marketing communication mix must then
communicate this excellence.
Marketers must also recognise and react to the ability
of individuals to judge evaluative criteria, as well as
their tendency to use surrogate indicators.
49. Blind Test: is one in which the consumer is not aware of
the product’s brand name. Such tests enable the marketer to
evaluate the functional characteristics of the product and to
determine if an advantage over a particular competitor has
been obtained without using halo effect of the brand name
or firm’s reputation.
Surrogate indicators: An attribute used to stand for or
indicate another attribute is known as a surrogate
indicators.it is based on consumer’s belief that certain
variables don not go together- such as lightweight and
strong; rich taste and low calories; and high fiber and high
protein. Eg: Wine and imported beers.
50. Points of differentiation: it speaks about the need
for marketers to come above the similar attributes
i.e. introducing the critical point of differentiation
on which the brand is positioned. Advertising
themes that emphasize specific usage occasions for
which the brand is particularly appropriate can be
effective, that draws attention on which the firm’s
brand excels.
